Sen. Shaheen seeks to close loophole and restore military retiree COLA

January 08. 2014 10:33PMU.S. Sen. Jeanne Shaheen on Wednesday filed an amendment that would eliminate tax loopholes for offshore corporations to fund the restoration of cost-of-living increases for military retirees that were cut as part of last year's budget deal.

Her amendment would be part of the emergency unemployment extension legislation that the Senate agreed on Tuesday to begin debating.

Shaheen, D-N.H., said in a statement that her amendment mirrors legislation she introduced in December, the Military Retirement Restoration Act, and replaces the estimated $6 billion in savings from military retiree COLA with an estimated $6.6 billion raised by eliminating a tax loophole for offshore corporations.

"I supported the bipartisan budget agreement we passed last year because it will help create economic certainty for our small businesses, promote job creation, and protect us from another government shutdown that can wreak havoc on our economy," Shaheen said in her statement. "But I also knew it wasn't perfect which is why I'm proposing a smart fix to one of its flaws."

U.S. Sen. Kelly Ayotte, R-N.H., also offered an amendment to the legislation to pay for a three-month extension of long-term unemployment benefits by "stopping illegal immigrants from claiming the Additional Child Tax Credit." Filers would be required to provide Social Security numbers in order to qualify for the credit, she said Tuesday in a statement.